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Bankrupt MoviePass says it's under 'pending' investigation by the FTC, SEC, 4 California DAs, and the New York AG

Jan 31, 2020, 20:17 IST
Hollis Johnson/Business InsiderMoviePass.
  • MoviePass declared Chapter 7 bankruptcy on Wednesday, according documents filed with the United States Bankruptcy Court for the Southern District of New York.
  • In the filing, MoviePass listed four "pending" investigations into the company.
  • MoviePass said it was being investigated by the Federal Trade Commission, the Securities and Exchange Commission, the New York Attorney General, and four California District Attorneys.
  • Visit Business Insider's homepage for more stories.

MoviePass has shut down, but its story might not be over yet.

On Wednesday, the defunct movie-ticket-subscription service declared Chapter 7 bankruptcy, according documents filed with the United States Bankruptcy Court for the Southern District of New York. The filing followed the shuttering of the service in September.

Bankruptcy might seem like the final chapter for the service - which captivated Hollywood when it gained millions of subscribers, burning hundreds of millions of dollars in the process - but in the filing, MoviePass listed four investigations into the company as "pending."

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MoviePass said it was being investigated by the Federal Trade Commission, the Securities and Exchange Commission, the New York Attorney General, and four California District Attorneys (Contra Costa County, San Joaquin County, Sonoma County, and Ventura County).

During Business Insider's four-month investigation into the company's practices, which was published in August, sources said MoviePass used various tactics to try to keep the service afloat as it ran out of money, including locking some subscribers out of their accounts.

MoviePass' parent company, Helios and Matheson, which also filed for Chapter 7 bankruptcy on Wednesday, listed the same investigations in its filing.

Read our four-month investigation on the rise and fall of MoviePass on Business Insider Prime.

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